Article By:
Mish Shedlock
Wednesday, January 31, 2024 4:59 AM EDT
Today, UPS announced it will use Artificial Intelligence to reduce office workers. It Joins Google, Amazon, and others in the shift. If only we could do the same for government.
2 Main Factors That May Spell Serious Trouble For FedEx
The question is, would they ever want to? Launching their own shipping division seems to be more a way of saving money than diversifying. So both companies are likely safe from competition. But the lost revenue will definitely hurt them. They made billions from Amazon. $AMZN $UPS $FDX
Gains Can Be Made In UPS
Good article, nice addition to the site. $UPS
United Parcel Service Stock Analysis
Thanks for all your comments. And while you are all correct, I suspect that $AMZN is looking to vertically integrate and become a competing shipping industry. Just as they decided to become their own web hosting company and became a dominant player in that space. I suspect they will not only drop UPS, but will begin to compete with it. That could crush $UPS.
United Parcel Service Stock Analysis
30% of #Amazon's $3 billion equates to about $1 billion in revenues for $UPS. #UPS has about $60 billion in revenues so losing $AMZN’s business would reduce UPS’ revenues by only 1.67%. Hardly significant.
United Parcel Service Stock Analysis
I found a 2013 $UPS 10-K filing with the SEC which stated "No single customer accounts for 10% or more of our consolidated revenue."
United Parcel Service Stock Analysis
What percentage of total $UPS deliveries are made up by $AMZN? Is it really that significant?
United Parcel Service Stock Analysis
What about how #Amazon launched it's own truck shipping company and its 20% stake that it purchased in #AtlasAir last month for air deliveries? Seems to me that they are looking to ditch #UPS. I would think that would be a major threat to the company and it's bottom line. $AMZN $AAWW $UPS